Many investors know that tobacco company Altria Group (NYSE: MO) owns a stake in beer giant Anheuser-Busch InBev -- a 10% stake, to be specific. But some investors may not have peeled back the facts to see what this means for Altria, both now and moving forward, so I'm going to do that today.
Altria's decision to hold onto its stake has proven a genius move, and it's likely to pay handsomely down the road.
Altria isn't perfect. Jumping into a $12.8 billion marriage with electronic cigarette company Juul in late 2018 has proven to be a colossal failure . And Wall Street has punished the stock, bludgeoning the shares to a valuation well short of its long-term norm. Analysts believe Altria's 2022 earnings per share (EPS) will come in at roughly $4.86, valuing the stock at a price-to-earnings ratio (P/E) ratio of just over 9, and that's against a decade-median P/E of 17.5.
For further details see:
10.6 Billion Reasons to Buy This Ultra-High Dividend Stock